Europe's Call for Economic Sovereignty Amidst Global Shifts

Germany's finance minister Lars Klingbeil advocates for 'European patriotism' to strengthen regional economic interests by prioritizing European-made goods and keeping jobs within Europe. His comments address challenges from dissolving alliances and weaponized trade, emphasizing the need for growth and modernization to maintain competitive advantage.

Germany's finance minister, Lars Klingbeil, issued a call for a new era of 'European patriotism' on Wednesday, urging measures to safeguard regional economic interests. He proposed that state-aided companies should retain employment within Europe, and public procurement should favor Europe-made products.

During a lecture at the German Institute for Economic Research DIW Berlin, Klingbeil emphasized the need for Europe to reassess its strategies as traditional alliances appear to be dissolving and trade becomes increasingly weaponized. Notably, he mentioned the Trump administration's National Security Strategy as an indicator of the U.S. distancing itself from Europe politically and culturally.

The minister highlighted Germany's economic challenges, including a contraction in 2023 and 2024 with only slight growth forecasted for 2025. He pointed to infrastructure deficiencies and regulatory hurdles, advising that only a blend of public and private investment can foster the necessary modernisation and growth.

(With inputs from agencies.)